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Construction costs in East LA is not cheap. You want to build a simple cost estimator for construction costs, and you hope to find a

Construction costs in East LA is not cheap. You want to build a simple cost estimator for construction costs, and you hope to find a useful linear relationship between cost (y) and floor space (x). You have data from a sample of four recently completed building projects:

Relationship between floor space and construction costs

Floor Space (000s of sq. ft.), x

Construction Cost ($000s), y

20

48

35

64

25

80

40

96

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Since tstat is not outside the critical values of 4.303, we can't reject the =0 null hypothesis.

Since tstat is not outside the critical values of 2.182, we can't reject the =0 null hypothesis

Since tstat is outside the critical values of 4.362, we can reject the =0 null hypothesis.

Since tstat is outside the critical values of 3.182, we can reject the =0 null hypothesis

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